Hynix Semiconductor to Shut Down Fab in the U.S.

The market of dynamic random access memory (DRAM) tends to be very competitive and manufacturers try to minimize their manufacturing costs using any means. Hynix Semiconductor, one of the world’s top DRAM suppliers, said late on Wednesday that it plans to shut down its manufacturing facility in Eugene, Oregon.

Hynix explained that because of short- and long-term market conditions, which include a steep reduction in the price of memory chips worldwide and accelerated technological migration towards next-generation production standards, Hynix Semiconductor it has decided to close its Eugene fabrication facility. The production of the fabrication plant will be eventually stopped by end of September.

As part of the deliberations that led to this shutdown, Hynix Semiconductor, the parent company of Hynix Semiconductor Manufacturing America, is seriously considering options to utilize the Eugene facilities after the closure. Options include pursuing a similar business to the current semiconductor operation; selling the equipment, building and land as a package to a third-party semiconductor manufacturer; and selling the building and land separately from the equipment which will be relocated. As soon as decisions are finalized, the company will communicate plans to the Eugene community and Oregon government leaders.

Hynix Semiconductor has also reviewed various options in order to utilize other 200mm wafer fabrication plants located in Icheon and Cheongju, Korea. Some are planned either to produce consumer DRAM and System IC products or to provide foundry service. The remainder will be seriously considered to sell the equipment.